The gold price in January showed promising resolve against an ever-strengthening pound. While gold experienced a positive month against other currencies, the strength of the British currency at the start of 2018 provoked slight losses for gold against sterling. The gold price fell from £968.29 at the start of January to £951.23 at the end, a loss of 1.76 per cent.
Rise of the pound
In January, the pound recorded its highest prices against the dollar since the Brexit vote. Following the 2016 referendum, the pound slumped from £1.49 to £1.29 in the space of just a fortnight. It has not yet recovered these losses, but is gaining promising ground, having reached £1.42 at the end of January; a one month increase of 5.26 per cent.
In that context, the slight loss of 1.76 per cent of gold’s value against the pound can be seen as less of a hit, considering the relative value increase of the pound itself. Gold, in fact, has seen respectable price rises against other currencies like the dollar, signalling continued strength and resolve through January, in a trend that we hope will continue for much of 2018.
The gold price
On the opening session of January, gold recorded a starting price of £968.29 per troy ounce. The first 12 days of the month recorded modest increases, hitting heights of £974.29 on the 4th and £981.31 on the 12th January – the month’s highest price. This was largely thought to be a reaction to concerns in the American economy, in particular Donald Trump signalling further disdain for the 2015 Iranian nuclear deal, according to reports from Reuters.
Gold fell against sterling through the rest of the month as the pound continued to rally. The precious metal hit lows of £955.14 on the 18th of January and £948.74 on the 25th January, before rising slightly to £951.23 on the final day of the month.
How much is your gold bullion worth?
It’s difficult to call how successful January has been for your individual gold investment. While international comparisons signal a promising month for the commodity, a simple look at a gold price chart against the pound would suggest a weak month for gold closer to home.
So perhaps now is a good time to buy gold? If you’re considering making an investment in gold coins and gold bullion then have a look through our gold investment options. Stay tuned to our blog for more market updates and gold investment news.
